DNA testing firm 23andMe files for bankruptcy to sell itself; CEO leaves after failed bids
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Bengaluru – Genetic testing firm 23andMe filed for for Chapter 11 bankruptcy protection in the US to help the US$50 million (S$66.8 million) company sell itself, as co-founder and chief executive Anne Wojcicki resigned after multiple failed takeover bids.
23andMe, whose saliva-based test kits help customers learn about their ancestry, had cut about 40 per cent, or 200 employees, of its workforce and stopped development of all its therapies as part of a restructuring programme announced in November.
Ms Wojcicki, to be replaced by chief financial officer Joe Selsavage on an interim basis, has been pushing for a buyout since last April but has been rebuffed by 23andMe’s board. She intends to make another bid during the bankruptcy process, she said in a post on X, without giving details.
Her last offer was for US$0.41 per share earlier in March, an 84 per cent cut from an offer the previous month since her private equity partner in that bid had walked after the board’s rejection.
The latest offer valued 23andMe at about US$11 million, well below its current value of US$50 million, according to London Stock Exchange Group data, and a far cry from its US$3.5 billion market capitalisation when it went public in 2021.
“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximise the value of the business,” 23andMe chairman Mark Jensen said in a statement.
23andMe said it secured a debtor-in-possession financing commitment for about US$35 million and expects to continue operating during the sale process. It did not say if it had any other buyout interest or offers.
It listed both assets and estimated liabilities of US$100 million to US$500 million.
A month before its restructuring, 23andMe agreed to pay US$30 million and give three years of security monitoring to settle a lawsuit accusing it of failing to protect the privacy of 6.9 million customers whose personal information was exposed in a data breach in 2023. REUTERS
